Global Energy Roundup: Hydrogen Corridor Funded, Strait of Hormuz Risk Lingers

Germany has committed €1.3 billion in subsidies to three Danish green hydrogen projects, marking a significant step toward building Europe's first international hydrogen market, according to OilPrice.com. The funding, announced June 22, supports projects by Everfuel (€244.9 million), European Energy (€228 million), and Copenhagen Infrastructure Partners (approximately €777 million). The planned Danish Hydrogen Backbone pipeline, expected operational before 2030, is designed to supply this hydrogen to Germany.

The move aims to solve a persistent "chicken-and-egg" problem in the hydrogen sector by simultaneously providing production support and demand certainty, OilPrice.com reported. Hydrogen Denmark CEO Tejs Laustsen Jensen said the announcement fundamentally changes the investment landscape, making projects less speculative.

Separately, the City of London Corporation highlighted the UK's continued dominance in green finance, topping global rankings for an eighth consecutive year. The UK is the largest global market for project-level financing for clean energy and the biggest in Europe for private investment in green tech, OilPrice.com reported.

Meanwhile, a major risk to global oil supply persists despite a new U.S.-Iran Memorandum of Understanding aimed at ceasing hostilities. The Strait of Hormuz, a chokepoint for roughly 20% of the world's daily oil needs, remains effectively closed by Iran, OilPrice.com reported. The closure is in response to Israeli attacks in Lebanon.

While the MOU's first provision calls for an immediate ceasefire, reopening the strait faces major practical hurdles. Insurance costs for tankers are estimated at five times pre-war rates, and charter rates are skyrocketing. An unofficial Iranian spokesman suggested any reopening would likely "carefully meter traffic" at rates far below normal, creating ongoing uncertainty for shippers.

This sustained disruption is rapidly depleting global commercial and strategic oil inventories, pushing the world toward an "energy cliff" or "tank bottoms," OilPrice.com reported. When these buffers run out, a bidding war for physical barrels is expected, which could drive oil prices to regain or exceed previous highs. The resulting economic pain would pressure central banks and governments worldwide.

For Bakken operators, the prolonged Strait of Hormuz disruption underscores the strategic importance of secure, stable production from outside volatile global chokepoints. While European hydrogen development represents a long-term structural shift in energy markets, the immediate supply threat in the Persian Gulf reinforces the value of domestic crude supply chains. The concurrent stress on global inventories and shipping capacity could provide a price floor for WTI, though market access remains critical for Bakken barrels.